Mr Cooper Group Inc fka COOP

[W3Research]

WAMUQ: Interesting Yahoo Post: 8.4% at time of seizure ...

http://online.wsj.com/article/SB123111375729952451.html?mod=googlenews_wsj

8.4% at time of seizure

1. Well capitalized. 10% or higher.
2. Adequately capitalized. 8% or higher.
3. Undercapitalized. Less than 8%
4. Significantly undercapitalized. Less than 6%
5. Critically undercapitalized. Less than 2%

http://messages.finance.yahoo.com/Stocks_(A_to_Z)/Stocks_W/threadview?m=tm&bn=86316&tid=54158&mid=54186&tof=1&rt=2&frt=2&off=1


As to your point 1, insolvency can be shown in one or more of several ways: (1) a balance sheet a/l test, (2) unable to pay obligations as they mature, or (3) undercapitalization. In any event, a debtor is presumed to be insolvent immediately before filing his bankruptcy petition. This is Bankruptcy Law 101.

As to your point 2, Section 548 of the bankruptcy code's constructive (i.e., circumstantial) fraud provision (which cooks the FDIC's goose) doesn't require what laymen regard as fraud or chicanery. It is a mechanical test based on circumstantial evidence.

http://messages.finance.yahoo.com/Stocks_(A_to_Z)/Stocks_W/threadview?m=tm&bn=86316&tid=54158&mid=54219&tof=2&rt=2&frt=2&off=1


Here's where we win this...from their (FDIC) own guidance/policy: 180-360 days..READ CHAPT 7 CLOSELY!!!

The FDIC is required by statute to maximize the return on the assets of the failed bank or thrift and to minimize any loss to the insurance funds. Adjustments to the closing books may be made between the date of the closing of the institution and the “settlement date.” The settlement date may be from 180 days to 360 days after the bank or thrift closing, depending on the failed institution’s size. Adjustments reflect (1) the exercise of options by the acquirer, (2) either any repurchase of assets by the receiver or any “put back” of assets to the receiver by the assuming institution, and (3) the valuation of assets sold to the acquirer at market prices.

http://messages.finance.yahoo.com/Stocks_(A_to_Z)/Stocks_W/threadview?m=tm&bn=86316&tid=54158&mid=54208&tof=2&rt=2&frt=2&off=1


and THIS is where they REALLY dik'd it up...;)

Resolution Strategy
The FDIC’s resolution activities begin with the receipt of the Failing Bank Letter. After a planning team has contacted the chief executive officer of the failing bank or thrift, the FDIC sends in a team of specialists to complete an information package. Part of the information package is an asset valuation review. The
appropriate resolution structures are then chosen, and the FDIC conducts an on-site analysis to prepare andplan for the closing.

Marketing a Failing Institution
Once all the possible resolution methods have been selected, the FDIC begins to market the failing bank or thrift as widely as possible to encourage competition among bidders. An information meeting is held to discuss the details of the failing institution with the approved bidders. All bidders performing due diligence are provided the same information, so no one bidder has an advantage.

Bid Submission
Bids are submitted in two parts: the first amount is the premium for the franchise value of the failed institution’s deposits, and the second amount is for all or part of the institution’s assets.

http://messages.finance.yahoo.com/Stocks_(A_to_Z)/Stocks_W/threadview?m=tm&bn=86316&tid=54158&mid=54210&tof=2&rt=2&frt=2&off=1


Wow, solid point. That could certainly come back to bite them.

http://messages.finance.yahoo.com/Stocks_(A_to_Z)/Stocks_W/threadview?m=tm&bn=86316&tid=54158&mid=54216&tof=2&rt=2&frt=2&off=1


and from their OWN policy:

"A resolution process that most closely resembles a free market should yield the best economic results for all involved. Such a process maximizes the number of bidders, allows for a wide variety of transaction structures, provides as good information as is available, and provides as much time as possible for due diligence."

http://messages.finance.yahoo.com/Stocks_(A_to_Z)/Stocks_W/threadview?m=tm&bn=86316&tid=54158&mid=54212&tof=2&rt=2&frt=2&off=1